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Wednesday, November 05, 2008
BSE Bulk Deals to Watch - Nov 5 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/11/2008 531541 AVON ORGANI RELIGARE FINVEST LTD S 428000 13.25
5/11/2008 505506 AXON INFOTEC SUBHASH CHANDER B 4000 10.00
5/11/2008 526141 COMP DISC IN PARISCOPE PICTURES PRIVATE LIM B 75461 44.26
5/11/2008 504028 GEE LTD VIDYA FINVEST LIMITED B 102436 31.89
5/11/2008 531137 GEMSTONE INV MALA HEMANT SHETH B 120000 21.01
5/11/2008 531137 GEMSTONE INV PREM M PARIKH S 60000 21.00
5/11/2008 531137 GEMSTONE INV BHAVESH P PABARI S 60000 21.00
5/11/2008 532519 JK SUGAR LTD BHARAT HARI SINGHANIA B 126000 15.26
5/11/2008 532519 JK SUGAR LTD YASHODHAN INVESTMENT LTD S 167678 15.26
5/11/2008 512167 MATRA REALT KOTAK MAHINDRA INVESTMENTS LIMITED S 107321 2.95
5/11/2008 504864 ORISA SP IRS BNS TOUR AND TRAVEL PRIVATE B 454059 81.35
5/11/2008 532884 REFEX REFRIG RAMESHBHAI V PARMAR S 100000 39.25
5/11/2008 532884 REFEX REFRIG PR VYAPAAR PRIVATE LIMITED S 124334 39.66
NSE Bulk Deals to Watch - Nov 5 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-NOV-2008,AHMEDFORGE,Ahmednagar Forgings Ltd,MSR MARKETING PRIVATE LTD,BUY,205148,35.76,-
05-NOV-2008,EDUCOMP,Educomp Solutions Limited,FIDELITY MANAGEMENT AND RESEARCH COMPANY,BUY,117000,2709.77,-
05-NOV-2008,AUROPHARMA,Aurobindo Pharma Ltd.,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,297000,125.11,-
05-NOV-2008,EASUNREYRL,Easun Reyrolle Relays,INDIA DISCOVERY FUND LTD,SELL,124000,40.55,-
05-NOV-2008,ENIL,Entertainment Network (In,CITI GROUP GLOBAL MKT.MAURITIUS PVT.LTD.,SELL,300000,158.00,-
Post Session Commentary - Nov 5 2008
The Indian markets crushed badly during final trade on lower US index futures and weak European markets as every one again turned towards concern over troubled economy after the US presidential election. The NSE Nifty ended below 3,000 level and BSE Sensex below 10,150 mark. Today market opened on pleasant note tracking firm cues from the global markets. Asian markets surged as Barack Obama elected as the 44th US President, which ended the uncertainty about the leader of US economy during the financial crises. Market was not able to hold the same momentum and start losing ground soon after start. Further it slipped more and continued to trade in deep red till the end of session on aggressive selling pressure mostly during final trading hour. From the sectoral front, heavy selling pressure was seen in the Oil & Gas, Metal, Reality, Capital Goods and Power stocks. While, Pharma stocks were in limelight as most of the buying was witnessed from these baskets. Mid Cap and Small Cap stocks also ended lower with cut of more than 1% each.
Among the Sensex pack 27 stocks ended in red territory and 3 in green. The market breadth was negative as 1565 stocks closed in red while 1000 stocks closed in green and 73 stocks remained unchanged.
The BSE Sensex closed lower by 511.11 points at 10,120.01 and NSE Nifty ended down by 147.15 points at 2,994.95. The BSE Mid Caps and Small Caps closed with losses of 51.61 points 3,394.61 and by 70.33 points at 3,964.78. The BSE Sensex touched intraday high of 10,945.41 and intraday low of 10,051.51.
Losers from the BSE Sensex pack are Reliance (12.76%), Tata Steel (10.05%), JP Associates (10.05%), Reliance Com Ltd (9.50%), DLF Ltd (8.79%), HDFC (8.63%), Grasim Indus (7.28%), Sterlite Industries (7.20%)), ACC Ltd (7.00%) and Tata Motors (6.53%).
Gainers from the BSE Sensex pack are Wipro Ltd (2.72%), Satyam Computer (0.27%) and Maruti Suzuki (0.08%).
Foreign direct investment (FDI) in India increased 259% in September to $2.56 billion, compared to the same month last year, with Mauritius being the largest investor. FDI for the same month last year stood at $713 million. The services sector attracted the highest foreign investment at $2.34 billion.
The BSE Oil & Gas index lost (9.44%) or 637.40 points to close at 6,112.11. Major losers are Gail India (15.34%), Reliance (12.76%), Essar Oil Ltd (11.30%), Rel;iance Petroleum (9.98%), Reliance Natural Resources (9.25%) and IOC Ltd (3.02%).
The BSE Metal index ended lower by (6.88%) or 402.93 points at 5,451.74. Major losers are SAIL (12.76%), Wespan Guajrat Sr (10.54%), Tata Steel (10.05%), Jindal Steel (8.45%), Sterlite Industries (7.20%) and Ispat Industries (5.97%).
The BSE Reality index ended down by (5.67%) or 135.44 points at 2,267. Losers are Housing Development (15.17%), Unitech Ltd (11.41%), Ansal Infra (10.84%), Orbit Co (9.39%), DLF Ltd (8.79%), Sobah Dev (6.65%) and Omaxe Ltd (6.33%).
The BSE Capital Goods index lost (4.42%) or 350.93 points to close at 7,591.64 as Praj Industries (10.30%), Walchand In (9.63%), Reliance Industrial Infra (9.22%), Areva (9.02%), Kalpat Power T (7.89%) and Lakshmi Machines (7.17%) ended in negative territory.
The PSU index ended lower by (2.82%) or 143.13 points to close at 4,935.52 as Gail India (15.34%), SAIL (12.76%), MRPL (10.44%), Hind Copper (9.46%), RECL Ltd (5.99%) and ST Trade Corp (5.33%) in negative territory.
The BSE Pharma index surged (1.18%) or 33.84 points at 2,913.22. Gainers are Orchid Chem (13.23%), Sun Pharma (10.22%), Dishman Pharma (6.30%), Matrix Lab (5.25%) and Biocon Ltd (3.53%).
Markets plunge
The 30-stock Sensex of the BSE resumed with gains of 300 points in early trades and touched an intra-day high of 10,945. However it could not hold on to the gains and drifted into the negative territory. The market appeared extremely bearish as the trading session progressed. Hectic selling in heavyweight, oil & gas, metal, realty and capital goods stocks in afternoon dragged the index to the day's low of 10,052. The Sensex ended 511 points lower at 10,120, while Nifty lost 147 points to close at 2,995. All the Sensex stocks, bar three, closed in the negative territory. Reliance Industries tumbled 12.76% at Rs1,269, Tata Steel faltered 10.05% at Rs215.75, JP Associates lost 10.01% at Rs80.50, Reliance Communications dropped 9.50% at Rs226.70, DLF slipped 8.79% at Rs264.65, HDFC shed 8.63% at Rs1,750.95, Grasim Industries slumped 7.28% at Rs1,049.45, Sterlite Industries fell 7.20% at Rs268.25 and ACC declined 7% at Rs470.95. Tata Motors, Mahindra & Mahindra, Bharti Airtel, Hindalco Industries and Reliance Infrastructure shed 4-6% each. The market breadth was extremely negative. Of the 2,638 stocks traded on the BSE, where 1,565 stocks declined, 1,000 stocks advanced. Seventy three stocks ended unchanged. All the 13 sectoral indices except BSE HC posted losses for the day. BSE Oil & Gas was the biggest loser and dropped 9.44% followed by BSE Metal (down 6.88%), BSE Realty (down 5.64%) and BSE CG (down 4.42%). Over 3.69 crore GVK Power & Infrastructure shares changed hands on the BSE followed by Suzlon Energy (3.46 crore shares), Reliance Natural Resources (1.76 crore shares), IFCI (1.29 crore shares) and Reliance Petroleum (1.19 crore shares). Valuewise, Reliance Industries registered a turnover of Rs552 crore followed by ICICI Bank (Rs275 crore), State Bank of India (Rs239 crore), Reliance Capital (Rs222 crore) and Suzlon Energy (Rs216 crore).
Asian Markets welcomes Barack Obama with rally
Nikkei, Kospi extends gains while Shanghai, Sydney, Hang Seng shows some rebound
The stock markets across the Asian region welcomed Barack Obama's win with rally, as energy and exporter shares hold on their sharp gains on the hopes that Obama’s administration will reinvigorate the world's largest economy. On Wall Street the celebration began yesterday only as the Dow Jones Industrial Average ended the day up by 305 points, to 9,625. The Nasdaq Composite Index finished higher by 54 points at 1,780. S&P 500 finished higher by 39 points at 1,005.
Oil prices jumped more than 10% Tuesday on signs that Saudi Arabia and other OPEC members had made cuts in crude exports and after global financial markets rallied ahead of the outcome of the U.S. election. However, it fell below US$68 a barrel today, as investors locked in profits from the previous session's rally. At 03:08 a.m. ET, oil was quoted at US$67.70 a barrel, down US$2.83 or 4.01%. The contract for December delivery settled up $6.62 at $70.53 a barrel on the New York Mercantile Exchange on Tuesday.
In the currency market, the U.S. dollar traded in the mid 99-yen levels in late Tokyo deals, down from upper 99-yen range in early trade, but higher compared to Tuesday's close in Tokyo. Chinese yuan weakened to 6.8322 a dollar in over-the-counter trading from Tuesday's close of 6.8240.
The Australian dollar closed 4% stronger as Senator Barack Obama's victory in the U.S. presidential election buoyed market sentiment. The Aussie finished the domestic session at US$0.6917 compared to Tuesday's close of US$0.6653.
The New Zealand dollar climbed strongly overnight to a two-week high against the greenback, as the dollar recorded its biggest one-day drop against a basket of currencies in 13 years, but lost ground during its domestic session Tuesday. The kiwi, however, finished the session higher at US$0.6048 compared to Tuesday's close of US$0.5870.
The South Korean won strengthened against the greenback. The won ended the session at 1,266.0 a dollar compared to Tuesday's close of 1,288.0 a dollar.
The Taiwan dollar closed the session at NT$32.791 to the US dollar down by NT$0.041 or 0.12% compared with the previous close of 32.842.
Coming back in equities, the Japanese stock market closed sharply higher, extending yesterday's sharp gains. After opening on a firm note, the key index briefly pared gains in the afternoon session after Obama's victory, but then climbed back again in the final hour of trade. The benchmark Nikkei Stock Average gained 406.64 points or 4.5% to a three-week closing high 9,521.24. The broader Topix index climbed 56.21 points or 6.17% to 966.91.
On the economic front, the Bank of Japan said that the monetary base in Japan was up 1.4% on year in October to 88.98 trillion yen, extending the 0.9% annual gain recorded in September. On a seasonally adjusted basis, the monetary base was up 6.6% on year at 89.87 trillion yen following a 15.8% annual gain in September.
In Mainland China, the stock market closed higher for the first time in four trading sessions, led by financial and construction-related stocks. In addition the reports that the transport ministry was working on a plan to invest 5 trillion yuan over the next three to five years also boosted investor sentiment. The benchmark Shanghai Composite Index climbed 53.91 points or 3.16% to close at 1,760.61.
In Hong Kong, the Hang Seng Index surged 3.17% to end the trading session at 14,840.16, after advancing in five of the previous six sessions. The Hang Seng China Enterprises Index spiked 5.32% to 7,225.69.
The Australian stock market closed sharply higher after it ended a four-day winning streak on yesterday. The benchmark S&P/ASX 200 index closed up 121.50 points or 2.88% at 4,336.60, its highest close in about a month. The broader All Ordinaries index climbed 117.50 points or 2.82% to 4,287.3.
There was slew of economic data from Australia. On the housing front, data released by the Australian Bureau of Statistics showed that Australia's September residential building approvals declined 7.2% on month and 21.6% on year.
Australia also posted a trade surplus on goods and services of A$1.46 billion in September, up from A$1.24 billion in August. Meanwhile, a report by the Australian Industry Group/Commonwealth Bank revealed that Australian performance of services index or PSI for October fell 2.8 points to 42.1, with readings below 50.0 indicating contraction of activity in the surveyed sector. Australia's services sector saw its seventh straight month of declining activity in October.
The New Zealand stock market rebounded, after it ended a five-session winning streak on yesterday. The benchmark NZX 50 index closed up 41.80 points or 1.47% at 2,886.11 and the broader NZX All Capital index gained 39.0 points or 1.4% to 2,916.6.
On the economic front, Statistics New Zealand said that labor costs rose 3.7% in the year to the June 2008 quarter. According to the agency, salary and wage rates, including overtime, rose 3.55 and non-labor costs rose 4.1%.
The South Korean stock market finished higher for the fifth-straight session, led by financial stocks. The benchmark Korea Composite Stock Price Index or KOSPI closed up 28.15 points, or 2.44%, at 1,181.50, giving away a portion of the 4% gains that it posted in early trading.
On the economic front, the National Statistical Office said that South Korea's retail sales grew 4.6% annually in September as consumers spent more on car fuel, groceries, and recreational products. Total retail sales in September was 20.99 trillion won compared to 20.08 trillion won a year earlier. Meanwhile, industry data showed that sales of imported automobiles in South Korea fell 14.3% from a year earlier to 4,273 units in October, marking the first monthly drop in nearly two years. Additionally, a government report released showed that South Korean exports of information technology products fell 6.4% on year in October due to a sharp decline in overseas demand for semiconductors.
In Philippines, the benchmark index PSEi climbed up 0.15% or 3.17 points to close at 2,006.21. On the economic front, Philippines year-on-year headline inflation rate continued to decelerate at 11.2 % in October from 11.8 % in September brought about by the continued slowing down in the annual price increases of the heavily weighted food, beverages and tobacco (FBT) and services items. Excluding selected food and energy items, core inflation continued to go up at a rate of 7.8 % in October from 7.5 % in September.
The Philippines producer price index for the manufacturing industry went up by 6.4 % in September 2008 compared with the year ago level. On a month-on-month basis, the PPI slightly increased by 0.6 % in September. This was brought about by the price increases exhibited by 13 major sectors led by furniture and fixtures, with a 9.5 % increase. On the other hand, five major sectors reflected flat growth in prices of commodities.
In Taiwan, the stock market finished the day modestly lower after profit taking in transportation and weakness in technology weighed on the index. Taiex, the weighted index, slipped 0.29%, or 14.37 points to close at 4,978.26. On the economic front, the statistical organization of Taiwan will release October data for consumer price index, wholesale price index and foreign reserves.
In India, the markets slipped in red after a firm positive start. At 15:29 IST, the BSE 30-share Sensex was down 576.21 points or 5.42% to 10,060.68.
In the other regional market, European shares ended their best winning streak of the year on Wednesday, as investors paused for breath after Barack Obama swept to victory in the U.S. presidential election. On a national level, the U.K. FTSE 100 index declined 2.1% to 4,550.18, the German DAX 30 index fell 1.4% to 5,206.07 and the French CAC-40 index lost 1.9% to 3,622.63
Market snaps five-day winning streak; Sensex drops nearly 5%
Weakness in European stocks and lower US index futures pulled the market sharply lower in what was a volatile trading session. The BSE Sensex declined 511.11 points or 4.81% %, with index heavyweight Reliance Industries (RIL) plunging close to 13% on brokerage downgrade. The S&P CNX Nifty fell below the psychological 3,000 mark. Realty, banking and metal stocks dropped on profit taking after recent strong gains.
Firm Asian stocks had triggered an intra-day recovery on the domestic market in afternoon trade after it had slipped into the red in mid-morning trade after a strong start. The market had surged earlier in the day boosted by rally in Asian stocks, Democrat Barack Obama’s election as the next US president and expectations that a cut in interest rates by state-run banks would result in lower borrowing costs for the corporates.
The early rally was also triggered by a sentiment by the Commerce and Industry Minister Kamal Nath after trading hours on Tuesday, 3 November 2008, that the government will further ease foreign investment rules, including those relating to defence production.
Trading in US futures suggested the Dow would fall 82 points at the opening bell, as the focus shifted to the weak economy after Obama's decisive win in the US presidential election. European markets which opened after the Indian market, fell as the spotlight moved back to the troubled economy after the US presidential election. Key benchmark indices in France, Europe and UK were down by between 1.44% to 1.88%.
Asian markets, which opened before the Indian market, surged boosted end of the uncertainty about who will lead the US economy in the midst of great financial peril. Key benchmark indices in China, Japan, Singapore, Hong Kong, and South Korea were up by between 1.76% to 4.46%. But the Taiwan Weighted fell 0.29%.
Obama captured the White House today, defeating Republican John McCain to make history as the first black to be elected as the US president.
The BSE 30-share Sensex plunged 511.11 points or 4.81% to 10,120.01. The Sensex surged 314.29 points at day’s high of 10,945.41 in early trade. The index slumped 579.60 points at the day's low of 10,051.52 in late trade.
The S&P CNX Nifty was down 147.15 points or 4.68% to 2,994.95.
The market snapped gains of the last five trading sessions. From a low of 8,509.56 on 27 October 2008, the BSE Sensex had risen 2,121.56 points or 24.93% to 10,631.12 on 4 November 2008. But there has been a massive erosion in investors' wealth this year. The barometer index BSE Sensex is down 10,166.98 points or 50.15% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11,086.76 points or 52.27% below its all-time high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 4,973 crore today as compared to a turnover of Rs 4,431.22 on 4 November 2008.
Nifty November 2008 futures were at 2973.50, at a discount of 21.45 points as compared to spot closing of 2994.95. NSE's futures & options (F&O) segment turnover was Rs 38,550.94 crore, which was higher than Rs 33,758.52 crore on Tuesday, 4 November 2008.
The BSE Mid-Cap index was down 1.5% at 3,394.61 and the BSE Small-Cap index was down 1.74% at 3,964.78. Both the indices outperformed the Sensex.
The BSE Oil & Gas index (down 9.44% to 6,112.11), the BSE Metal index (down 6.88% to 5,451.74), the BSE Realty index (down 5.64% to 2,267) underperformed the Sensex.
The BSE Capital Goods index (down 4.42% to 7,591.64), the BSE PSU index (down 2.82% to 4,935.52), the BSE Teck index (down 2.64% to 2,142.67), the BSE Power index (down 2.5% to 1,736.92), the BSE Auto index (down 2.28% to 2,727,82), the BSE Bankex (down 1.87% to 5,633.94), BSE FMCG index (down 1.72% to 1,927.53), the BSE Consumer Durables index (down 0.82% to 2,108.29), the BSE IT index (down 0.57% to 2,734.35), the BSE HealthCare index (up 1.18% to 2,913.22), outperformed the Sensex.
The market breadth turned weak in late trade in contrast to a strong breadth earlier in the day. On BSE, 1,000 shares advanced as compared to 1,565 that declined. 73 shares remained unchanged.
India’s largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) slumped 12.76% to Rs 1,269.45 after ABN Amro recommended a 'sell' on the stock and cut its target price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip was the biggest loser from the Sensex pack.
Jaiprakash Associates (down 10.01% to Rs 80.50), Grasim Industries (down 7.28% to Rs 1,049.45), Tata Motors (down 6.53% to Rs 181.20), and ACC (down 7% to Rs 470.95) were the other major losers from Sensex pack.
Telecom stocks fell on concerns that a government move to charge more for radio spectrum may impact their earnings. India’s largest telecom services provider by sales Bharti Airtel fell 4.54%.
India's second largest telecom services provider by sales, Reliance Communication slipped 9.5% after Morgan Stanley cut price estimate on the stock by 45% to Rs 280.
As per reports, the government plans to increase fees telecom firms pay for using additional spectrum by up to 2% of the firms' revenue, and would also levy a one-time charge for granting additional spectrum.
Metal stocks declined after recent sharp fall in metal prices on global recession worries. Hindalco Industries, Hiindustan Zinc, Sterlite Industries, Steel Authority of India fell by between 2.75% to 12.76%. Tata Steel, the world's sixth largest steel maker, was down 10.05% after ArcelorMittal on reported quarterly operating profit and sales below expectations.
IT stocks were mixed amid strong rupee and on worries the US outsourcing business will be curtailed after Obama won the US presidential election. India's third largest IT exporter by sales Satyam Computer Services rose 0.27% even as American depository receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 2.72% as ADR jumped 5.25%. India's second largest IT exporter by sales Infosys fell 0.91%, even as ADR rose 4.84%. India's largest IT exporter by sales Tata Consultancy Services slipped 0.5% off day’s high of Rs 548.90.
Obama has strong reservations on outsourcing from the US. He had made many statements during his election speeches that he would discourage outsourcing from the US when he comes into power.
The rupee strengthened 0.5% to 47.46/50 per dollar. A strong rupee affects the IT companies as they earn most of their revenues in dollar terms.
Bank stocks fell following reports private sector banks are expected to cut their lending and deposit rates in the next 15 days and will support credit lines to finance companies and mutual funds. India’s largest commercial bank State Bank of India was down 3.59% after its chairman O P Bhatt said on 4 November 2008 the bank was likely to cut interest rates by up to 50 basis points.
Bank of India gained 0.04% on reports it has cut its prime lending rate by 75 basis points to 13.25% with effect from Thursday, 6 November 2008. But Indian Bank fell 3,12% after early gains after the bank said yesterday it will consider cutting its lending and deposit rates by 50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut its benchmark prime lending rate to 13.25% from 14%, effective 5 November 2008.
State Bank of Travancore rose 5% after bank fixed 20 December 2008 as the record date for 10 for 1 stock split.
India’s largest private sector bank by net profit ICICI Bank fell 1.62% even as the American depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's chief executive K.V. Kamath said on 3 November 2008, the bank will review interest rates in the next few days.
India’s second largest private sector bank by net profit HDFC Bank slipped 1.46%, even as ADR jumped 7.63% on Tuesday.
India’s largest home loan lender by operating income HDFC fell 8.63%.
As per recent reports, public sector banks are likely to cut deposit and lending rates by 50 to 75 basis points within one week. The Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its main short-term lending rate viz. the repo rate to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis.
Most realty stocks plunged in late trade from their gains earlier in the day despite hopes lower interest rates will spur demand for residential properties. Realty majors, Unitech, Anant Raj Industries, Parsvnath Developers, DLF slipped by between 2.6% to 11.59%. Indiabulls Real Estate rose 5.15%.
IVRCL Infrastructures & Projects rose 0.33%, extending gains for the fourth session in a row, on strong Q2 results and healthy order book.
GMR Infrastructure spurted 4.26% on reports the company is set to buy a coal mine in Indonesia
Gammon India surged 6.76% extending gains for the fourth day in a row, on bargain hunting after a recent sharp fall caused by poor quarterly performance.
Healthcare stocks were mixed following reports the drug regulator National Pharmaceutical Pricing Authority has issued notices to Cipla, Ranbaxy Laboratories and Piramal Healthcare among others for overcharging. Cipla, Glenmark Pharmaceuticals, and Ranbaxy Laboratories fell between 0.38% to 2.06%. Dr. Redddy’s Laboratories, Piramal Healthcare rose between 0.04% to 1.18%. The drug regulator has asked these firms to deposit Rs 1630 crore with the government exchequer besides explaining the hike.
Auto stocks were mixed on reports the government may cut petrol and diesel prices to drum up support with voters ahead of key state elections later this month. Maruti Suzuki India and Hero Honda Motors rose by between 0.08% to 1.41%. Mahindra & Mahindra and Tata Motors fell by between 6.07% to 6.53%.
Ashok Leyland was fell 8.96% on reports of plans to reduce monthly production target for November 2008 to 1,500 units from the average 6,800 units it clocked each month in the first six months of this fiscal.
PSU OMCs fell on reports the government may cut petrol prices by around Rs 2 a litre and diesel by Rs 1 per litre to drum up support with voters ahead of key state elections later this month. BPCL, HPCL and Indian Oil Corporation fell by between 2.21% to 3.02%.
Meanwhile, Crude oil fell in New York as investors judged yesterday's 10 percent gain excessive, and on forecasts that a government report will show U.S. crude inventories swelling as demand ebbs. Crude oil for December delivery declined as much as $3.47, or 4.9 %, to $67.06 a barrel on the New York Mercantile Exchange.
GAIL India slumped 15.34% even on signing a cooperation agreement with the Himachal Pradesh state government for extension of the proposed Dadri-Bawana-Nangal natural gas pipeline to the state.
Airlines stocks declined on reports of Kingfisher Airlines defaulting on payment of lease rentals on aircrafts. Kingfisher Airlines tumbled 16.57%. SpiceJet and Jet Airways fell by between 4.49% to 6.39%. The government had recently scrapped customs duty on jet fuel.
Shri Dinesh Mills was locked 10% upper limit at Rs 795.95 at 11:36 IST on BSE, on setting record date for 10-for-1 stock split.
Shree Cement rose 2.56% after cement shipments rose 12.81% to 6.25 lakh tonnes in October 2008 over October 2007.
Compact Disc India galloped 5.52% after the company said it would issue convertible warrants at a sharp premium to the prevailing stock price.
GVK Power & Infrastructure clocked the highest volume of 3.69 crore shares on BSE. Suzlon Energy (3.46 crore shares), Reliance Natural resources (1.76 crore shares), IFCI (1.29 crore shares) and Reliance Petroleum (1.19 crore shares) were the other volume toppers in that order.
Daily Call - Nov 5 2008
US markets rose on hopes of uncertainty getting replaced by firm action by the new president of United States Mr. Barack Hussein Obama, Jr. The new US president is likely to raise taxes on rich, spend it on packages for middle class and spur their consumption and take long lasting actions to revive US economy.
Banks and real estate stock rallied yesterday on hopes of FM inspired cut in interest rates by banks reviving their business prospects. Banks margins are going to be under pressure as credit growth is unlikely to keep pace with deposit growth this quarter for sound banks not withstanding cut in SLR and CRR. IT stocks are going to be in a tough environment as President Obama's anti off-shoring stance coupled with delay in IT budgets is heady cocktail.
Next meaningful resistance comes in 11257. We continue to prefer Power, PSUs and mid caps.
Market may gain on positive global cues.
The strong Asian indices in morning trades and overnight gains in US markets may see market add gains. However, FIIs remaining net sellers in equities in last couple of sessions may hurt the investor sentiment. Among the local indices, the Nifty could test 3200-3250 levels on the upside and may slip to 3100 on the downside. The Sensex has a likely support at 10500 and may face resistance at 10800.
Major US indices registered gains on Tuesday with the Dow Jones gained by 305 points at 9625, the Nasdaq moved up by 54 points to close at 1780.
Except Rediff & Satyam all the Indian ADRs traded positive on the US bourses. HDFC Bank was the biggest gainer with a gain of over 7.63% followed by ICICI Bank & MTNL advanced above 7% each. While VSNL, Wipro, Infosys, Tata Motors, Patni Computers, and Dr Reddy's gain over 2-5% each.
Crude oil prices advanced further, with the Nymex light crude oil for December delivery gaining by $7.59 to close at $71.50 a barrel. In the commodity space, the Comex gold for December delivery gained $30.50 to settle at $757.30 an ounce.
Trading Calls - Nov 5 2008
Nifty (3142) Sup 3090 Res 3230
Buy Jindal saw (431)
SL 426 Target 441, 443
Buy Omaxe (67)
SL 64.5 Target 72, 73
Buy Sobha (120)
SL 117 Target 126,128
Sell Titan (953)
SL 965 Target 928, 922
Sell TCS (508)
SL 514 Target 496, 493
After many nightmares, enjoy some dream run!
You know a dream is like a river, ever changing as it flows.
And a dreamer's just a vessel that must follow where it goes.
Even as the bulls are enjoying their winning streak, it’s more than a dream come true for Democratic Senator Barak Obama. The American public are just about to finish voting for a new president, and indications show a clear lead for Obama over his Republican rival John McCain. It's not as if Obama is a magician who will remove all the pain. The fact that the uncertainty over the US presidential election will soon be over seems to have bolstered the sentiment across the globe.
On Tuesday, we wondered how long the current rebound in global stocks last given the weak economic outlook? Well, for the time being the bulls are all set to continue the momentum even today. The biggest factor is the big gains made by US and other world markets overnight. Asian markets too have opened sharply higher this morning.
Coming to the broader market, there could be some cooling, if not today than over the next few days, after the recent bounce back. Remain guarded even though the ongoing rally may prompt some to reckon that the worst is over. Put higher trading stop losses and ride the brief rally for now.
For India, the outcome of the US election won't make much of a difference, though there are some concerns over Obama's stance on IT outsourcing. Software shares were the biggest laggards on Tuesday despite the broad-based rally. History shows that the Indian IT industry has largely been unaffected by any political backlash in the US. Don’t be surprised if much of what Obama says just turns out to be political rhetoric in an election year.
Banks will continue to be in focus as private banks' heads are set to meet the Finance Secretary today to discuss the liquidity situation and possibility of easing lending rates. On Tuesday, the Finance Minister held a meeting with the heads of PSU banks, and many nationalised banks have already indicated that they will trim lending rates in a few days' time. Much of Tuesday's advance could be attributed to this announcement by the Finance Minister.
FIIs were net sellers of Rs156.1mn (provisional) in the cash segment on Tuesday while the local institutions pulled out Rs1.74bn. In the F&O segment, the foreign funds were net buyers at Rs6.64bn. On Monday, FIIs were net buyers of Rs7.62bn in the cash segment.
US stocks surged on Tuesday even as voting began across America to decide who will win the race to the White House. Early indications on electoral votes show Democrat Barack Obama well ahead of his Republican rival John McCain.
After surging as much as 330 points, the Dow Jones Industrial Average ended at 9,625.28, up 305.45 points, or 3.3% from the last close. All but one of the blue-chip index's 30 components posted gains. The Dow's sole laggard was Hewlett-Packard (down 1%).
The S&P 500 rose 39.44 points, or 4.1%, to 1,005.74, for its first close above 1,000 since Oct. 13. The Nasdaq Composite index added 53.79 points, or 3.1%, to 1,780.12.
Energy, financials and materials paced the gains among the S&P 500's 10 industry groups. Healthcare and utilities proved to be the session's weakest performing sectors.
Market breadth was positive. Volume on the New York Stock Exchange topped 1.3bn, and advancers topped decliners about 4 to 1. On the Nasdaq, more than 937mn shares exchanged hands, and advancers passed decliners nearly 2 to 1.
Financial stocks got a boost from a Wall Street Journal report that the Treasury might buy stakes in a broader range of financial firms, including bond insurers and specialty finance firms such as General Electric's GE Capital Unit and CIT Group.
The Treasury has already used a chunk of the US$700bn rescue fund to buy stakes in troubled banks.
Financial markets tend to hate uncertainty and hence is getting some relief that the election is finally here. The rally over the last week and on Tuesday may also be signaling that the US market is factoring in a victory for Obama.
Some market observers say US stocks will likely get a boost regardless of who wins. That is because both candidates represent a new administration and both will have to deal with the battered economy.
The dollar fell against the euro and gained against the yen. COMEX gold for December delivery climbed US$30.50 to settle at US$757.30 an ounce.
US light crude oil for December delivery rose US$6.62 to settle at US$70.53 a barrel on the New York Mercantile Exchange.
Gasoline prices fell another 2.4 cents to a national average of US$2.391 a gallon. This marks the 48th consecutive day of decline. During that same time period, prices dropped by US$1.46 a gallon, or 37.9%.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.76% from 3.91% late on Monday.
The London interbank offered rate fell sharply. Three-month Libor denominated in US dollars fell to 2.706% from 2.859% on Monday. That is the lowest level since June 9. One-month Libor fell to 2.177% from 2.358% on Monday, to the lowest level since November 2004.
The overnight Libor, a key interbank lending rate, falling to 0.38% from 0.39% on Monday, according to Dow Jones.
European stocks rose further on Tuesday, as American voters went to the polls to select a new president and as Morgan Stanley gave an upbeat assessment of the prospects for global equities.
The pan-European Dow Jones Stoxx 600 index climbed 4.5% to 233.50, the first time the index has managed to gain for six straight sessions this year.
The French CAC-40 index climbed 4.6% to 3,691.09, while Germany's DAX 30 index rose 5% to 5,278.04 and the UK's FTSE 100 index jumped 4.4% to 4,639.50.
Markets opened lower on Tuesday, after rallying for four straight trading sessions. However, bulls not only staged a strong come back but further gained ground to end the day with smart gains. The rally was led by the rate sensitive stocks for the after FM P Chidambaram said that all PSU banks agreed to cut lending rates by 75bps.
However, the IT stocks among the top losers as the rupee appreciated 1.5%. The currency advanced for a fifth day after SEBI data showed that global funds bought the most Indian stocks in two months on Oct. 31. Rupee was the biggest gainer of the 10 most-traded Asian currencies, according to the reports.
The BSE benchmark Sensex surged 293 points or 2.8% to close 10,631 and the NSE Nifty index was up 98 points to close at 3,142.
Among the 30-components of Sensex, 24 stocks were in the positive terrain and 6 stocks ended in the red. ICICI Bank, ITC, SBI, ONGC and Bharti Airtel were among the major gainers. On the other hand, Infosys, Satyam, TCS and Wipro were among the major laggards.
Shares of TTML surged over 7% to Rs15.1 after report stated that Israel’s Ceragon Networks has inked an agreement with the company for wireless backhaul solutions. The stock hit an intra-day high of Rs15.3 and a low of Rs13.7 and recorded volumes of over 2,00,000 shares on BSE.
Shares of ACC lost ground after the company announced that its sales fell 3.4% last month. The company sold 1.7mn tons of cement in October, compared with 1.76mn tons a year earlier. The stock ended at Rs506 lower by 1% after hitting an intra-day high of Rs515 and a low of Rs488 and recorded volumes of over 1,00,000 shares on BSE.
Shares of UCO Bank gained after reports stated that it is targeting a net interest margin of 2% for the year to March 2009 and plans to cut its prime lending rate by 50bps to 13.5%.
The company has reportedly said that they have meeting on November 10 to revise interest rates. The scrip ended at Rs31.9 gaining 4% touching an intra-day high of Rs32 and a low of Rs29 and recorded volumes of over 9,00,000 shares on BSE.
Shares of EPIC Energy gained after the company announced that it received a contract to conduct Investment Grade Energy Audit for ten Government Buildings in Arunachal Pradesh from the Arunachal Pradesh Energy Development Agency.The scrip ended 2% higher to Rs87 hitting an intra-day high of Rs87.5 and a low of Rs85.
Shares of Tata Steel advanced after report stated that it has commenced work on new blast furnace for 10mn ton capacity at Jamshedpur Works. The stock rose over 6% to Rs239 hitting an intra-day high of Rs245 and a low of Rs215 and recorded volumes of over 39,00,00 shares on BSE.
Shares of KEC International rallied by over 10% to Rs130.7 after the company announced that it secured three orders worth Rs2.2bn. The scrip touched an intra-day high of Rs130.7 and a low of Rs122 and recorded volumes of over 6,00,000 shares on BSE.
Can the bulls sustain the current tempo? That is the big question worrying most players after the recent spurt. While the main indices could advance a little more in the near term, investors are still skeptical about a sustained turnaround. That is because considerable amount of headwinds still persist, both on the local as well as global front.
RIL shuts five of its seven polyester and petrochemicals units at Patalganga near Mumbai (BS)
NTPC set to achieve an additional power generation capacity of 22.4GW targeted under the 11th plan period (FE)
US FDA warns Sun Pharma’s US arm, Caraco Pharma, over quality control issues (ET)
Axon Board to vote in favour of HCL Tech (BS)
Lehman Brothers sell stake in DLF Assets to Symphony Capital Partners (BS)
Infosys and Satyam called to re-tender for Telstra deal (DNA)
Tata Teleservices launches CDMA operations in Assam at an investment of Rs1bn (BS)
Moody reaffirms ICICI Bank UK’s financial strength rating (ET)
GAIL sings an agreement with Himachal Pradesh Government for extension of gas pipeline (ET)
DLF ties-up with Luxottica Group, an Italian eyewear brand, to foray into Indian retail market (DNA)
Suzlon Energy seeks new payment schedule for RE Power buy (BS)
Ispat Industries cuts prices of steel products by up to Rs5,500/ton (ET)
GMR Infra is close to acquiring Indonesia-based PT Barasentosa Lestari coal mine for over US$100mn (ET)
Tata Communications announces the expansion of its global MPLS services into key South-East Asian destinations (ET)
Ambuja Cement registers a 4% decline in dispatches in October 2008 to 1.42mn tons (BL)
Kingfisher Airlines defaults on lease rentals for four jets (ET)
Omaxe offloads 51% stake in its budget home arm, Nahil. (DNA)
India Cements may relocate its proposed 2mtpa plant in Himachal Pradesh (BS)
Parsvnath Developers puts its retail plan on hold (DNA)
Dish TV adds 5.3 lakh customers in Q2 FY09 (ET)
Maytas Infra wins an order worth Rs390mn from JSW Steel (BL)
Balaji Telefilms plans to enter into the broadcasting industry by launching a TV channel (ET)
Himatsingka Seide is planning to aggressively enhance its retail presence (BS)
Zylog receives Board approval to acquire two US-based companies (ET)
Aksh Optifibre intends to increase its IPTV subscriber base to 40,000 by 2008-end (DNA)
Economic Front Page
Government is looking at cutting petrol prices by up to Rs2/litre (ET)
Finance ministry clears an additional Rs520bn fertiliser subsidy for October-December 2008 (DNA)
Various PSU Banks are considering rate cuts (ET)
Finance Ministry defers plan to allow only those companies with 25% minimum public ownership to stay listed (ET)
Government to levy a one-time charge for spectrum above 6.2MHz in addition to the license fees and also raise the annual usage charges (BS)
RBI is likely to announce relaxations in norms governing NPAs in the infrastructure sector (ET)
Government mulls core sector status for realty sector (FE)
Government may take more steps to help the Indian aviation industry (BS)
UP Sugar mills challenges the recently announced SAP for sugarcane in Allahabad High Court (BS)
Karnataka sugar factories seek tax waiver of Rs1.32bn (BS)
Various private sector banks set to join rate cut race (BS)
STT collections till October 2008 dip 1.6% yoy to Rs37.22bn (FE)
FDI norms in defense production may ease (DNA)
A bright day for precious metals as dollar plunges
Gold and silver prices rise after dollar plunges
A substantially weak dollar pushed precious metals considerably higher today, Tuesday, 04 November, 2008. Silver prices also rose today.
The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold earlier this year. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices.
On Tuesday, Comex Gold for December delivery rose $30.5 (4.2%) to close at $757.3 an ounce on the New York Mercantile Exchange. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (26.3%) since then. Last week, gold prices ended lower by 1.6%. For the month of October, gold ended lower by 18%. It was the biggest percentage loss for gold since February, 1983.
This year, gold prices have lost 8.5% till date. The dollar index has gained 11% this year. For the third quarter ended September, 2008, gold prices ended lower by 5.1%. It was the first quarterly loss for the yellow metal since the second quarter in FY 2007. Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. For first quarter prices gained 10.7%.
On Tuesday, Comex silver futures for December delivery rose by 38 cents (3.9%) to $10.13 an ounce. Last week, silver fell 1.9%. For the month of October, silver slipped by 20%. Till date, silver has lost 31% this year. Silver had ended month and quarter of September 2008 with a loss of 10%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
In the currency market on Tuesday, the dollar fell sharply against the euro and most other major currencies but gained on the yen as Americans headed to the polls and equity markets surged on a further bounce in risk appetite. The dollar index, a measure of the greenback against a trade-weighted basket of six currencies, was at 84.660, up by 1.9%.
On Tuesday, oil futures for December delivery rallied past $70 per barrel to close at their highest level in two weeks, rebounding after dropping nearly 6% in the previous session . Crude oil for December delivery rose $6.62, or 10.4%, to close at $70.53 a barrel on the New York Mercantile Exchange.
Earlier this year, the weakening dollar and higher global demand for raw materials had led to records this year for commodities including gold. Gold reached a record in March as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the latest move, the Federal Reserve has cuts its target bank lending rate to 1% from 5.25% in September, 2007. The Fed did it in eight steps.
Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for December delivery closed higher by Rs 126 (1.08%) at Rs 11,740 per 10 grams. Prices rose to a high of Rs 11,807 per 10 grams and fell to a low of Rs 11,476 per 10 grams during the day’s trading.
At the MCX, silver prices for December delivery closed Rs 165 (0.98%) higher at Rs 16,933/Kg. Prices opened at Rs 16,750/kg and rose to a high of Rs 17,218/Kg during the day’s trading.
Crude witnesses massive jump
Prices climb by more than 10% in a single session
Crude prices ended with substantial gains on Tuesday, 04 November, 2008. The weak dollar was the main reasons behind this. Crude even ignored a weak economic data today.
On Tuesday, crude-oil futures for light sweet crude for December delivery closed at $70.53/barrel (higher by $6.62 or 10.4%) on the New York Mercantile Exchange. Prices reached a high of $71.77 during intra day trading. Prices reached a high of $147 on 11 July but have dropped almost 47% since then. Last week, prices rose by 5.7%. On a yearly basis, crude price is lower by 23%. For this year in 2008, crude prices have dropped 25.2%.
For the month of October, 2008, crude prices ended lower by 32.6%, the biggest monthly drop since 1983.
In the currency market on Tuesday, the dollar fell sharply against the euro and most other major currencies but gained on the yen as Americans headed to the polls and equity markets surged on a further bounce in risk appetite. The dollar index, a measure of the greenback against a trade-weighted basket of six currencies, was at 84.660, up by 1.9%.
Brent crude oil for December settlement increased $5.96 (9.9%) to settle at $66.44 a barrel on London's ICE Futures Europe exchange.
In economic news, market participants shrugged off negative factory orders data. September factory orders fell 2.5% month-over-month after dropping 4.3% in August. The results were worse than the 0.8% decline that was expected.
OPEC officials decided last month at its meeting at Vienna that OPEC will pare production by 1.5 million barrels a day w.e.f 1 November, 2008. The official production quota is currently 28.8 million barrels, and it cut by 1.5 million in November.
Last week, the Centre for Global Energy Studies said that global oil demand may fall for the first time in 15 years in 2008 and stagnate next year.
For the third quarter of the year crude prices ended lower by 28%. This was the biggest quarterly drop since 1991. Before that, crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. For the month of September, prices registered drop of 13%.
Against this background, December reformulated gasoline rose 12.5% to close at $1.5327 a gallon and December heating oil gained 9% to close at $2.1616 a gallon.
December natural-gas futures rose 38.1 cents, or 5.6%, to finish at $7.219 per million British thermal units.
At the MCX, crude oil for November delivery closed at Rs 3,343/barrel, higher by Rs 176 (5.5%) against previous day’s close. Natural gas for November delivery closed at Rs 344.4/mmbtu, higher by Rs 18.4/mmbtu (5.6%).
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